Hello,
I am trying to estimate a fuzzy RD. Fuzzy RD is equivalent to 2SLS (Hahn et al. 2001). So I am trying to run 2SLS. (I am not allowed to use rd or rdrobust commands.)
Compulsory schooling in Turkey increased from 5 to 8 years in 1997. Birth cohorts that are born after 1986 (not included) are affected by the reform. I want to control for birth-cohort polynomials up to fourth-order. I also include age dummies. However, when I run the command below, birth_year2 birth_year3 birth_year4 are omitted because of multicollinearity. Could you help me with my code?
xi: ivregress 2sls lwage (yrs_school = reform) birth_year birth_year2 birth_year3 birth_year4 i.age , first
Thank you very much
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